Real Estate Math

A Minnesota buyer purchases a property for $245,000 with 5% down. What is the loan-to-value (LTV) ratio?

A5%
B90%
C95%✓ Correct
D80%

Explanation

Down payment = $245,000 x 5% = $12,250. Loan amount = $245,000 - $12,250 = $232,750.

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